Getting Good with Money summary

If the thought of sitting down to create a budget makes you want to sprint in the other direction, don’t worry – you’re not alone. Many people avoid budgeting because they think it’ll be too much work, but the process doesn’t have to be complicated. 

To make things simple, Jessi uses what she calls her “quick-start budget.” This method is great for beginners because it’s straightforward, easy to implement, and doesn’t require a lot of setup. In fact, all you need is your checking account balance, a calendar, and a calculator. 

Take a moment to imagine the unimaginable – what might happen if you suddenly found yourself in a life-altering emergency. What if you got into an accident or lost your job? Would you be able to survive for months without any sort of income?

This is what an emergency fund is for – a hefty savings account meant to protect you and your family if the worst were to happen. 

Racking up debt is a lot like gaining weight. It’s easy to do, and can either happen suddenly or creep up on you over time. And, like shedding pounds, it’s a struggle to get rid of.

There’s no magic pill for weight loss, and there’s no quick, easy way to get out of debt. It’s only going to happen if you roll up your sleeves and put in the work. It might feel scary – but don’t panic just yet. 

Now let’s cover a few points about paying off a mortgage. One of the most common assumptions about mortgages is that interest won’t end up costing much if you have a low rate. 

What many people don’t understand is the concept of total interest percentage, or TIP for short. Let’s say, for example, that your 30-year mortgage is $300,000 with an interest rate of 4 percent. If you pay off that loan over the course of the entire 30 years, it will end up costing you $515,608 in total!

Whether you’re trying to tackle debt, build an emergency fund, or pay off your mortgage, making space in your budget is one of the fastest ways to achieve your goals. Stretching your budget might be difficult at first, but even small tweaks can have a big impact. 

A good place to start is by determining what’s eating up most of your budget each month. Ironically, a likely culprit is food. 

Personal finance doesn’t have to be complicated. Although it may seem scary or intimidating at first, anyone can learn to be better with money. Everyone’s experiences will be different, but there are certain strategies that can work for anyone. 

The journey toward financial freedom is less about the math and more about your ability to change your own behaviors. To avoid getting overwhelmed or burned out, start with smaller goals and work your way up to larger ones.